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Alternative Market Briefing

Institutional support on the rise in plant-based food sector

Thursday, June 20, 2019

Laxman Pai, Opalesque Asia:

Over the past two years, $13bn has been invested in the US vegan/alternative food industry, bringing the total amount invested in the sector up to $17bn, said latest Preqin Insights.

With the vast majority of this capital injected into the industry within the past couple of years, the plant-based trend has gained considerable investor support and remains a force to be reckoned with well into 2019.

The plant-based food sector has garnered a huge amount of support in recent years. Attracting investment from venture capital firms in both the private equity space and the corporate arena - even Tyson New Ventures, the venture capital arm of Tyson Foods, has invested in Beyond Meat - as well as from individual investors, goes some way to legitimizing a space that has not always been taken seriously.

The latest deal figures from Preqin Pro demonstrate this rise in institutional support: in 2016, there were a total of 10 deals for plant-based food companies in the US.

The number of transactions rose to 12 in 2017, and in 2018, it leapt to 22. With 14 deals already completed so far in 2019, interest in plant-based investing is growing rapidly.

Plant-based meat producer Beyond Meat reached a peak valuation of +570% following its IPO in May 2019. Bill Gates started investing in Impossible Foods in 2017. Film director James Cameron has invested in and brought attention to alternative, plant-based foods. Word is out - plant-based i......................

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